The Australian Renewable Energy Agency (ARENA) has committed $15 million to an Australian-developed hydrogen technology that will be trialled in steel manufacturing, as part of a $30 million project aimed at reducing the cost of green hydrogen for industry.
The funding will support Hadean Energy to build and operate a pilot hydrogen plant at a BOC site in Hastings, Victoria, subject to final deployment arrangements and approvals. Hydrogen produced at the facility will be used at another industrial site in steel manufacturing processes, providing a real-world test of the technology’s potential to support lower-emissions steelmaking.
Green hydrogen is expected to play an important role in reducing emissions across industries that are difficult to electrify, including green iron and steel production and aviation. However, high production costs remain a significant barrier to wider industrial adoption.
Hadean estimates its technology could produce hydrogen using around 30 per cent less electricity than conventional electrolysers, potentially improving the economics of production.
ARENA CEO Darren Miller said reducing electricity consumption was an important step towards making green hydrogen more affordable and practical for industry.
“Green hydrogen has significant potential to reduce emissions from industries that are difficult to electrify, but the cost of production remains a major barrier,” Mr Miller said.
“This pilot will demonstrate how Hadean’s technology performs in a real-world industrial environment and provide the evidence needed to assess its commercial potential.”
The pilot plant is expected to produce up to 7 kilograms of hydrogen per hour, supplying around 85 per cent of the hydrogen required for an annealing process in steel manufacturing.
The technology was originally developed by Australia’s national science agency, CSIRO, over eight years, with previous support from ARENA. The latest funding will help Hadean progress the technology towards commercial readiness while supporting the development of local expertise, supply chains and advanced manufacturing capability.
Mr Miller said the project could create opportunities for broader industrial applications.
“This could open the door to broader use of green hydrogen in steelmaking and other industrial applications, while helping build Australia’s hydrogen industrial capability.”
Beyond hydrogen production, the technology could also be used in the future to create low-emissions synthetic fuels, potentially helping reduce emissions in sectors reliant on energy-dense fuels.
The project forms part of ARENA’s broader focus on testing Australian-developed renewable energy technologies in operating industrial environments to assess their commercial potential.